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On October 31, the equity section of Lucerne Company consists of share capitalordinary CHF327,600 and retained earnings CHF879,100. Lucerne is considering the following two courses
On October 31, the equity section of Lucerne Company consists of share capitalordinary CHF327,600 and retained earnings CHF879,100. Lucerne is considering the following two courses of action: (1) declaring a 5% share dividend on the 54,600, CHF6 par value shares outstanding, or (2) effecting a 2-for-1 share split that will reduce par value to CHF3 per share. The current market price is CHF14 per share. Prepare a tabular summary of the effects of the alternative actions on the components of equity, outstanding shares, and par value per share.?
Question 11 On October 31, the equity section of Lucerne Company consists of share capital-ordinary CHF327,600 and retained earnings CHF879,100. Lucerne is considering the following two courses of action: (1) declaring a 5% the 54,600, CHF6 par value shares outstanding, or (2) effecting a 2-for-1 share split that will reduce par value to CHF3 per share. The current market price is CHF14 per share. Prepare a tabular summary of the effects of the alternative actions on the components of equity, outstanding shares, and par value per share. After After Before Action Spllt Equity Share capit ordinary CHF CHF CHF Share premium ordinary Retained earnings CHE CHE CHF Total equity Outstanding shares Par value per share CHF CHF CHFStep by Step Solution
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